.% EY'ORDS! Abstract 0ust be followed by a list of :eywords" sub1ect to the 0a7i0u0 of five% 9hese should be arran#ed in alphabetic order separated by co00as and full stops at the end% F% MANUSCRIPT! Manuscript 0ust be in BRITISH ENGLISH prepared on a standard A( si*e PORTRAIT SETTING PAPER% It 0ust be prepared on a sin#le space and sin#le colu0n with &G 0ar#in set for top" botto0" left and ri#ht% It should be typed in H point )alibri !ont with pa#e nu0bers at the botto0 and centre of every pa#e% It should be free fro0 #ra00atical" spellin# and punctuation errors and 0ust be thorou#hly edited% I% HEADINGS! All the headin#s should be in a &' point )alibri !ont% 9hese 0ust be bold-faced" ali#ned left and fully capitalised% 2eave a blan: line before each headin#% H% SUB-HEADINGS! All the sub-headin#s should be in a H point )alibri !ont% 9hese 0ust be bold-faced" ali#ned left and fully capitalised% J% MAIN TEXT! 9he 0ain te7t should follow the followin# se?uenceB INTRODUCTION REVIE' OF LITERATURE NEEDBIMPORTANCE OF THE STUDY STATEMENT OF THE PROBLEM OBJECTIVES HYPOTHESES RESEARCH METHODOLOGY RESULTS & DISCUSSION FINDINGS RECOMMENDATIONSBSUGGESTIONS CONCLUSIONS SCOPE FOR FURTHER RESEARCH ACNO'LEDGMENTS REFERENCES APPENDIXBANNEXURE It should be in a H point )alibri !ont" sin#le spaced and 1ustified% 9he 0anuscript should preferably not e7ceed 5000 WORDS% &'% FIGURES &TABLES! 9hese should be si0ple" crystal clear" centered" separately nu0bered 8self e7plained" and 262@81 7G12 J8 3J:H8 2D8 23J@8B96?G<8% S:G<=81 :9 I323 1D:G@I J8 78426:48I J8@:E 2D8 23J@8B96?G<8% It should be ensured that the tablesAfi#ures are referred to fro0 the 0ain te7t% &&% E*UATIONS!9hese should be consecutively nu0bered in parentheses" hori*ontally centered with e?uation nu0ber placed at the ri#ht% &E% REFERENCES! 9he list of all references should be alphabetically arran#ed% 9he author ;s< should 0ention only the actually utilised references in the preparation of 0anuscript and they are supposed to follow H3<H3<I S25@8 :9 R898<84=64?% 9he author ;s< are supposed to follow the references as per the followin#B All wor:s cited in the te7t ;includin# sources for tables and fi#ures< should be listed alphabetically% 4se ;8I/< for one editor" and ;8I/10 for 0ultiple editors% >hen listin# two or 0ore wor:s by one author" use --- ;E'77<" such as after =ohl ;&JJI<" use --- ;E''&<" etc" in chronolo#ically ascendin# order% Indicate ;openin# and closin#< pa#e nu0bers for articles in 1ournals and for chapters in boo:s% 9he title of boo:s and 1ournals should be in italics% Double ?uotation 0ar:s are used for titles of 1ournal articles" boo: chapters" dissertations" reports" wor:in# papers" unpublished 0aterial" etc% !or titles in a lan#ua#e other than 6n#lish" provide an 6n#lish translation in parentheses% 9he location of endnotes within the te7t should be indicated by superscript nu0bers%

INTRODUCTION er#er and Ac?uisitions are strate#ic decisions ta:en for 0a7i0i*ation of a co0panyLs #rowth by increasin# its production and 0ar:etin# operations% 9herefore 0any co0panies find the best way to #o ahead and li:e to e7pand ownership precincts throu#h Mer#er and ac?uisitions ;M8As<% Mer#er creates syner#y and econo0ies of scale% !or e7pandin# the operations and cuttin# costs" business entrepreneur and ban:in# sector are usin# Mer#er and Ac?uisitions worldwide as a strate#y for achievin# lar#er si*e" increased 0ar:et share" faster #rowth" and syner#y for beco0in# 0ore co0petitive throu#h econo0ies of scale% 9he co0panies 0ust follow le#al procedure of Mer#er and Ac?uisitions ;M8As< as enshrined by RBI" S6BI" )o0panies3 Act &J.F and Ban:in# Re#ulation Act &J(J%9he 0er#ers which are ta:in# place in the present era are 0ainly 0otivated by strate#ic and econo0ic #ains in the lon#er run" syner#y opportunities 0ay e7ist only in the 0ind of corporate leaders% A 0er#er can also i0prove co0pany3s standin# in the invest0ent co00unity@ bi##er fir0s often have an easier ti0e raisin# capital than s0aller ones% Many of the 0er#ers were successful but history trends show that rou#hly two-third of the 0er#er would disappoint on their own ter0s" which 0eans they lose value in the stoc: 0ar:et% But still this strate#y used by corporate in a wide assort0ent of fields such as infor0ation technolo#y" teleco00unications" and business process outsourcin# as well as in traditional businesses are purported at #ainin# stren#th" e7pandin# the custo0er base" cuttin# co0petition or enterin# into a new 0ar:et or product se#0ent%

LITERATURE REVIE' AND GAP After #oin# throu#h the available relevant literature on M8As and it co0es to :now that 0ost of the wor: hi#h li#htened the i0pact of M8As on different aspects of the co0panies% Ra1u untar An1ana and auncar Dipa Ratna:ar ;E'&&< e7a0ined the effect of 0er#er on business houses in India and they too: the case of the 9ata roup of )o0panies and drew conclusions that 0er#er does not creates wealth for business houses in India% oyal =%A% 8 Joshi 5i1ay ;E'&&< in their paper entitled MMer#ers in Ban:in# Industry of IndiaB So0e 60er#in# IssuesG #ave an overview on Indian ban:in# industry and hi#hli#hted the chan#es occurred in the ban:in# sector after post liberali*ation% Joshua O = Panachi ;E'&&< studies the co0parative analysis of the i0pact of Mer#er and Ac?uisitions financial efficiency of ban: in $i#eria% =e0al Moha00ad 4s0an ;E'&&< finds the post 0er#er profitability of the Royal Ban: of Scotland and fro0 the accountin# ratio analysis it is proved that RBS 0er#er proves to be a failure in Ban:in# Industry% =uria:ose Sony 8 ireesh =u0ar % S ;E'&'< in their paper" they assessed the strate#ic and financial si0ilarities of 0er#ed Ban:s" and relevant financial variables of respective Ban:s were considered to assess their relatedness% Ben:ard ) 2anier et al%" ;E'&'< studied the si0ulatin# the dyna0ic effect of hori*ontal 0er#er and too: the case the case of 4 S Airlines% Aharon David / et al%" ;E'&'<" analy*ed the stoc: 0ar:et bubble effect on Mer#er and Ac?uisitions and followed by the reduction of pre bubble and subse?uent" the burstin# of bubble see0s to have led to further consciousness by the investors and provide evidence which su##ests that durin# the euphoric bubble period investors ta:e 0ore ris:% =uria:ose Sony et al%" ;E''J< focused on the valuation practices and ade?uacy of swap ratio fi7ed in voluntary a0al#a0ation in the Indian Ban:in# Sector and used swap ratio for valuation of ban:s% Schierec: Dir: et al%" ;E''J<" e7plained the relationship between ban: reputation after Mer#er and Ac?uisitions and its effects on shareholder3s wealth% It is found in the study of Bhas:ar A 4day et al%" ;E''J< that Ban:in# sector witness of Mer#er activities in India when ban:s facin# the proble0 of loosin# old custo0er and failed to attract the new custo0ers

RESEARCH GAP It see0s fro0 the above review that various studies have been 0ade on Mer#er and Ac?uisitions in the Indian Ban:in# Industry" but these studies provide 0i7ed result and not ade?uately e7plore the other varied di0ensions of M8As% 9he present study would #o to investi#ate the detail of M8As with #reater focus on ac?uirin# ban: in the Indian Ban:in# sector% 9his study will also discuss the Pre 0er#er and Post 0er#er perfor0ance of ac?uirin# ban:s

OBJECTIVES OF THE STUDY 9he present study has ai0ed to analy*e the post 0er#er operatin# perfor0ance appraisal of Ac?uirin# Ban:s in ter0s of profitability in the Indian Ban:in# Industry and co0pare the pre and post Mer#er perfor0ance of Ac?uirin# Ban:s%

DATA AND METHODOLOGY !or the purpose of analy*in# the profitability of ac?uirin# ban:s after Mer#er and Ac?uisitions various financial and accountin# ratios are underta:en% Data of operatin# perfor0ance ratios for up to four years prior and seven years after the Mer#er and Ac?uisitions were collected fro0 the financial state0ent of co0pany3s e7tracted fro0 the website of 0oney control% >ith the help of Independent sa0ple t-test the pre 0er#er spannin# for four years and post 0er#er seven years financial ratios have been co0pared% 9he Student3s t- distribution is as followsB- t = x1 x2s _ n1n2n1+n2

ANALYSIS AND INTERPRETATION Researcher has selected two cases for the study that are shown in table-&% !irst the Mer#er of the lobal 9rust Ban: 2td with the Oriental Ban: of )o00erce on &(th Au#ust E''(" and the second the Mer#er of the South u1arat 2ocal Area Ban: 2td with Ban: of Baroda on E.th June E''( has been underta:en% In order to analy*e the financial profitability of Ac?uirin# Ban:s after the 0er#er the !inancial and Accountin# ratios li:e Operatin# Profit Mar#in" $et Profit Mar#in" Return on $et >orth 8 Return on )apital 60ployed have been calculated% 9ablesB E 8 - show the Pre-0er#er and the Post-0er#er financial perfor0ance of ac?uirin# ban: ;Oriental Ban: of )o00erce< in ter0s of above ratios% 9he P<8-78<?8< financial perfor0ance appraisal of the ac?uirin# ban: ;O<68423@ B34C :9 C:778<=8< on the basis of ratio analysis is done% 9he operatin# profit 0ar#in for the year E''' was I-%--&( percent% 9he net profit 0ar#in was I%-.((I percent with RO$> 8 RO)6 at &J%.'.I( and &%&-.-& percent% 9he operatin# profit 0ar#in decreased at I&%H('- percent in E''& but the net profit 0ar#in increased at &&%--(J. percent% 9he RO$> 8 RO)6 reduced at &-%&'& and '%I(J(- percent% 9he operatin# profit 0ar#in re0ains unchan#ed with I&%&I'.I percent and the net profit 0ar#in had sli#htly decline at &'%.(EII percent% +owever" the RO$> 8 RO)6 shows i0prove0ent in the year E''E at &J%IJ'-- and '%JJ-.. percent% But in the financial year before the 0er#er" the operatin# profit 0ar#in dropped at FJ%--HE- percent as well as the net profit 0ar#in" RO$> 8 RO)6 escalate in the year E''- at &-%HFJEH" E&%FF-&I and &%-(((. percent% 9he P:12-78<?8< perfor0ance appraisal of ac?uirin# ban: ;Oriental Ban: of )o00erce< for the very ne7t year declined in ter0s of operatin# profit 0ar#in at FF%.&JII percent but the net profit 0ar#in 0ount at E'%-EIEI percent% 9he RO$> 8 RO)6 re0ain unchan#ed at E&%HE-(J and &%-(EH( percent in the year E''.% 9he operatin# profit 0ar#in has i0proved in the year E''F with I&%'-I.. percent however the net profit 0ar#in" RO$> 8 RO)6 reduced at &-%.EFH(" &'%II.&F percent and '%J(.-( percent% 9he operatin# profit 0ar#in has increased in the year E''I at I.%JF--E percent but the other ratios li:e net profit 0ar#in 8 RO$> re0ain unchan#ed e7cept the return on capital e0ployed show declined with &&%E(.-E" &'%-I&'- and '%IH... percent% 9he net profit 0ar#in" RO$> 8 RO)6 reduced in the year E''H at .%&F(.(" F%&&.(& 8 '%-HJ(& percent but the operatin# profit show i0proved perfor0ance and 0oved up to H(%H-H. percent% 9he net profit 0ar#in" RO$> 8RO)6 a#ain shows positive 0ove0ent in the year E''J after declined in the previous year at &'%EE-EF" &E%EEJI 8 '%H'(EE percent and the only operatin# profit 0ar#in sli#htly decline in the year E''J at IH%(.J-F percent% 9he operatin# profit 0ar#ins a#ain fell at I.%F'I.I percent and the net profit 0ar#in" RO$> 8 RO)6 rose in the year E'&' at &&%'FE-F" &-%II-H& 8 '%HE.F- percent% 9he ratio analyses for the year E'&& had declined in ter0s of operatin# profit 0ar#in" net profit 0ar#in" RO$> 8 RO)6 0oved at I(%-FE(." H%I&'&I" J%(HII. 8 '%F.E.F percent% In tables ( 8 . further shed the li#ht on the Pre Mer#er and Post Mer#er ratios of Ban: of Baroda ;Ac?uirin# Ban:< which is used for the analysis% 9he ratio analyses of the P<8 78<?8< period of ac?uirin# ban: ;B34C :9 B3<:I3< for the years E''' to E''-%9he operatin# profit 0ar#in for the year E''' at F(%.&H-( percent with the net profit 0ar#in was J%F-&E. percent alon# with the ratios li:e RO$> 8 RO)6 at &.%.(-(J and '%H.IHJ percent% 9he operatin# profit 0ar#in and net profit 0ar#in declined in the year E''& at .H%H(.( 8 (%II'F percent% 9he RO$> and RO)6 also dropped off at H%&H-(F and '%(--I. percent% 2ater in E''E all the ratios such as operatin# profit 0ar#in" net profit 0ar#in" RO$> 8 RO)6 i0proved with F.%&E.(&" J%&FF.J" &(%EFE&E 8 '%IFJHI percent% In the year E''- operatin# profit 0ar#in decreased at F(%''J&. percent and the ratios li:e net profit 0ar#in" RO$> 8 RO)6 i0proved before the 0er#er of ban:s at &E%FI-F&" &I%F&.-( 8 &%'&&E. percent% 9he P:12 78<?8< ratios of ac?uirin# ban: for the very ne7t year E''. were declined" the operatin# profit 0ar#in and net profit 0ar#in at (F%H'H-J and &'%.E-JI percent% 9he RO$> and RO)6 were &E%'EFH and '%I&(JJ percent% 9he ratio analyses for the year E''F shows i0proved perfor0ance as co0parin# with the previous year" the OPM" $PM and RO)6 0ount at .-%(JEJ." &&%F(I-E 8 '%IEJEH percent e7cept the return on net worth &'%.(&JH percent% !or the year E''I" the operatin# profit 0ar#in increased at F(%&E(IE percent and net profit 0ar#in has re0ained sa0e at &&%(&JI percent% 9he return on net worth and return on capital e0ployed were at &&%HFFIH and '%I&I'I percent% 9he operatin# profit 0ar#in increased in the year E''H was at FH%E'H( percent and ratios li:e $PM" RO$> 8 RO)6 shows i0prove0ent and 0oved at&E%&.&.." &E%JJHEI and '%IJJEH percent% 9he operatin# profit 0ar#in and net profit 0ar#in showed a positive i0prove0ent and 0oved up to at FJ%JEJ(. and &(%I.IHJ percent" while the return on net worth and return on capital e0ployed increased up to at &I%-.&HE and '%JIJ-J percent in the year E''J% All the ratios shows positive i0prove0ent in the year E'&' the perfor0ance of ac?uirin# ban: in ter0s of OPM" $PM"RO$> 8 RO)6 and sti0ulated at I-%''(FE" &H%-&.&I" E'%E(.EI 8 &%'JHHF percent% 9he perfor0ance of ac?uirin# ban: for the year E'&& continuously increased e7cept the operatin# profit 0ar#in which had sli#htly reduced% But the net profit 0ar#in 8 return on capital e0ployed 0oved the hi#hest level at &J%-H'HF and &%H-.& percent alon# with return on net worth for the sa0e year was E'%E'.& percent% 9able F shows t-test analysis of =318 I ;the lobal 9rust Ban: 2td with the Oriental Ban: of )o00erce<% 9he analysis indicates that the 0ean of operatin# profit 0ar#in ;I&%(E'& vs I.%E...< and t-value of -&%EIJ which leads to the conclusion that there is i0prove0ent in the Operatin# Profit Mar#in after the Mer#er but not si#nificant statistically" the results also indicate that the 0ean of $et Profit Mar#in ;&'%II.( vs &&%(F.H< and t-value of -%EFI which shows the perfor0ance in ter0s of net profit 0ar#in of oriental ban: of co00erce i0proved but not si#nificant statistically" it is found that there is increase in the 0ean of Return on $et >orth ;&H%.&.& vs &E%'HE-< and t-value E%E.(% It see0s to have declined so it is considered that it is not affected by 0er#er therefore it is not si#nificant statistically% 9he 0ean value of Return on )apital 60ployed;&%'..I vs '%HE'H< and t-value &%-.E which leads to the conclusion that the perfor0ance of ban: in ter0s of return on capital e0ployed has declined so it is not si#nificant statistically% 9able I shows the =318 II .the South u1arat 2ocal Area Ban: 2td with the Ban: of Baroda<% 9he co0parison of the Pre Mer#er and Post Mer#er operatin# perfor0ance ratios for the sa0ple of ban:s 0er#er shows that there is no chan#e in the 0ean of Operatin# Profit Mar#in ;F-%&((F vs F(%'(H'< and t-value -%&I( which is statistically insi#nificant but there is positive i0prove0ent in the $et Profit Mar#in after the 0er#er with 0ean value ;J%'F'. vs &(%'EH&< and t-value -E%EJE which is however si#nificant statistically% >hile Return on $et >orth the 0ean is ;&-%J'&& vs &.%'--I< and t-value -%((' which records sli#htly i0prove0ent in post 0er#er period but leads to the conclusion that it is not si#nificant statistically% 9he 0ean value of Return on )apital 60ployed ;'%IFHE vs '%HHHJ< and t- value -'%J'& which leads to the conclusion that there is no chan#e in the return on capital e0ployed after the 0er#er therefore it is statistically insi#nificant% It is therefore concluded that all the financial ratios do not i0prove after the 0er#er so the perfor0ances of ban:s in ter0s of financial profitability re0ain unchan#ed% TABLE 1! LIST OF SELECTED BANS MERGER FOR STUDY S/ N: N378 :9 2D8 T<34198<:< B34C N378 :9 2D8 T<34198<88 B34C D328 :9 M8<?8< & lobal 9rust Ban: 2td% Oriental Ban: of )o00erce Au#ust &(" E''( E South u1arat 2ocal Area Ban: 2td% Ban: of Baroda June E." E''( S(+$'#; R##"$'h#$: '()!i0"&i(% .$() R#!($& (% T$#%, "%, P$(/$#, RBI, V"$i(+ I+#, VIII '()!#&i&i(% "%, '(%(0i,"&i(%, 67 S#! 566<.

RESULTS AND DISCUSSIONS 9he analysis su##ests that the perfor0ance of Oriental Ban: of )o00erce after ac?uired #lobal trust ban: 2td has not been i0proved in ter0s of Operatin# Profit Mar#in" $et Profit Mar#in" Return on $et >orth 8 Return on )apital 60ployed with t- values ;-&%EIJ" -%EFI" E%E.(" &%-.E< which led to the conclusion that there is no si#nificance difference in all the ratios after the 0er#er and the perfor0ance of Oriental Ban: of )o00erce was not i0proved in ter0s of profitability" si0ilarly the perfor0ance of Ban: of Baroda after ac?uired South u1arat 2ocal Area Ban: ltd has not been i0proved in ter0s of Operatin# Profit Mar#in" Return on $et >orth 8 Return on )apital 60ployed% Only $et Profit Mar#in shows i0prove0ent after the 0er#er with t-values ;-%&I("-E%EJE"-%(('"-J'&< which concludes that there is no difference in the 0ean value of the Pre Mer#er and Post Mer#er operatin# perfor0ance of ac?uirin# ;Ban: of Baroda< and concluded that it is not si#nificant statistically% 9he profitability of both ac?uirin# ban:s has not i0proved after the 0er#er" therefore NG@@ H5F:2D8161 61 3==8F28I 34I A@28<4326H8 H5F:2D8161 61 <8;8=28I/ 9he results say that thou#h Mer#er is helpful for e7pansion and #rowth but no #uarantee for i0provin# the profitability of ac?uirin# ban:s%

CONCLUSION It is clear fro0 the analysis that the only hypothesis set for the validation has been accepted% Both the ac?uirin# ban:s ;Oriental Ban: of )o00erce 8 Ban: of Baroda< have not created positive difference after the 0er#er in ter0s of profitability% !or co0parin# the accountin# ratios li:e" Operatin# Profit Mar#in" $et Profit Mar#in" Return on $et worth etc of the Pre and Post 0er#er the t-test is applied% After the 0er#er we see that the various financial para0eters of the ban: perfor0ance have not i0proved in both cases" the profits are not visible but it 0ay be possible that i0proved perfor0ance of 0er#ed Ban: will show in later years% 9here are various 0otives" which attract the ban: for 0er#er but it is not necessary to achieve all ob1ectives after 0er#er% 9he si*e of the ban: 0ay VOLUME NO. 3 (2012), ISSUE NO. 7 (JULY) ISSN 0976-2183 INTERNATIONAL JOURNAL OF RESEARCH IN COMMERCE & MANAGEMENT A Monthly Double-Blind Peer Reviewed Refereed Open Access International e-Journal - Included in the International Serial Directories www%i1rc0%or#%in &I.increase but no #uarantee to increase net profitability after 0er#er% Result concluded that the 0er#er and ac?uisitions is the useful tool for #rowth and e7pansion in the Indian ban:in# sector% !uture research in this area could be the study of i0pact of 0er#er on share holder3s wealth and ta:e 0ore ban:s to a lar#er sa0ple concernin# a lon#er ti0e period for the study which would have #iven better result%

VOLUME NO. 3 (2012), ISSUE NO. 7 (JULY) ISSN 0976-2183 INTERNATIONAL JOURNAL OF RESEARCH IN COMMERCE & MANAGEMENT A Monthly Double-Blind Peer Reviewed Refereed Open Access International e-Journal - Included in the International Serial Directories www%i1rc0%or#%in &IFRE$UEST FOR FEEDBACK

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VOLUME NO. 3 (2012), ISSUE NO. 7 (JULY) ISSN 0976-2183 INTERNATIONAL JOURNAL OF RESEARCH IN COMMERCE & MANAGEMENT A Monthly Double-Blind Peer Reviewed Refereed Open Access International e-Journal - Included in the International Serial Directories www%i1rc0%or#%in I